Miller Value Partners, an investment management company, released its “Income Strategy” second-quarter 2023 investor letter. A copy of the same can be downloaded here. In the second quarter, the strategy gained 3.14% (net of fees) outperforming the ICE Bank of America High Yield Index’s 1.63% return and underperforming the S&P 500 Index’s 8.74% gain. Year-to-date, the strategy returned 0.48%. In addition, please check the fund’s top five holdings to know its best picks in 2023.
Miller Value Partners Income Strategy highlighted stocks like Organon & Co. (NYSE:OGN) in the second quarter 2023 investor letter. Based in Jersey City, New Jersey, Organon & Co. (NYSE:OGN) is a health care company. On July 26, 2023, Organon & Co. (NYSE:OGN) stock closed at $22.29 per share. One-month return of Organon & Co. (NYSE:OGN) was 7.53%, and its shares lost 31.31% of their value over the last 52 weeks. Organon & Co. (NYSE:OGN) has a market capitalization of $5.685 billion.
Miller Value Partners Income Strategy made the following comment about Organon & Co. (NYSE:OGN) in its second quarter 2023 investor letter:
“Organon & Co. (NYSE:OGN) dropped in the quarter after it reported 1Q23 revenues of $1.54B, -1.9% Y/Y, in-line with consensus, and Adjusted EPS from continuing operations of $1.08, compared to 1Q22 EPS of $1.65, -7% below consensus of $1.16. Adjusted EBITDA for the quarter came in at $518MM, or a margin of 33.7%, -761bps Y/Y. The company’s Biosimilars segment posted revenue growth of 18% Y/Y, with the strong performance driven by Renflexis, which grew 34% Y/Y excluding the impact of foreign currency (ex-FX) due to continue demand growth in the US and Canada, as well as Brenzys, which posted Y/Y growth of 36% ex-FX as a result of timing of tenders in Brazil. The company maintained its quarterly dividend of $0.28, or a 5.4% annualized yield, and also voluntarily paid down $250MM of debt in the quarter, bringing total debt to $8.7B as of quarter end. Management reiterated FY23 guidance for revenue of $6.30B (+2.0% Y/Y), Adjusted gross margin in the low-mid 60% range, and an Adjusted EBITDA margin of 32.0%, at the respective midpoints.”
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Organon & Co. (NYSE:OGN) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 33 hedge fund portfolios held Organon & Co. (NYSE:OGN) at the end of first quarter which was 37 in the previous quarter.
We discussed Organon & Co. (NYSE:OGN) in another article and shared the list of worst performing S&P 500 stocks in 2023. In addition, please check out our hedge fund investor letters Q2 2023 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.
